Any proposed regulation of small business credit has now been deferred, as the Government now says it wants to take time to get reforms right.
The Government previously raised eyebrows in the commercial lending and broking sector with proposed guidelines that would have regulated commercial lending. The proposed legislation had raised concerns among brokers, who said it could restrict access to business credit.
According to Gadens Lawyers, Treasury has now announced it will put off any action on small business finance.
"Treasury's release said that the Government considers that it is important to get the reforms right, given the important role that small businesses play in the Australian economy," Gadens said.